ASML Holding NV · EURONEXT:ASML
ASML Holding NV — Merrill Lynch Global TMT Conference London 2009
25 slides from ASML Holding NV's conference presentation, Jun 3, 2009
Slide 1: Merrill Lynch Global TMT Conference London
Merrill Lynch Global TMT Conference London Peter Wennink Executive Vice President and Chief Financial Officer June 3, 2009 / Slide 1
Slide 2: Safe Harbor
Safe Harbor "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of backlog, IC unit demand, financial results, average sales pric
Slide 3: Agenda
Agenda z Market z ASML fundamentals intact z Strategy for the future z Outlook and summary / Slide 3
Slide 4: Market
Market / Slide 4
Slide 5: Market trends
Market trends z Semiconductor equipment demand collapsed in Q1 as customers adjusted production capacity and semiconductor inventory Memory z Capacity utilization at NAND and DRAM increased as of February, driven by recovering demand and reduced manufacturing capacity (200 mm equipment) z Spot and c
Slide 6: DRAM margins: production cut-backs resulted in negative operating margins
DRAM margins: Production cut-backs resulted in negative operating margins, despite of raising ASPs Operating Margins of main DRAM Manufacturers (Q1/06 - Q1/09) 60% 40% 20% Most Operating Margin [% of Sales] advanced 0% prod. node Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 4Q08 1Q09 in Q1
Slide 7: DRAM Gb prices kept increasing during April
DRAM 1 Gb prices kept increasing during April 5x nm manufacturers are cash profitable MAIN DRAM SPOT & CONTRACT PRICES (01/2008 - 2009YTD) 2.4 512Mb DDR2 667 SPOT PRICE 2.1 512Mb DDR2 667 CONTRACT PRICE 1Gb DDR2 667 SPOT PRICE 1.8 1Gb DDR2 667 CONTRACT PRICE 300 mm cash-costs 1.5 for 7x nm 1 Gb DRAM
Slide 8: NAND MLC Gb mainstream ASPs stabilized above 4x and 5x nm cash-costs
NAND MLC 16 Gb mainstream ASPs stabilized above 4x and 5x nm cash-costs MAIN NAND SPOT & CONTRACT PRICES (01/2008 - 2009YTD) 18 17 16 15 14 13 16Gb NAND SLC SPOT PRICE 12 Chip ASP [$US] 16Gb NAND SLC CONTRACT PRICE 11 10 16Gb NAND MLC SPOT PRICE 9 16Gb NAND MLC CONTRACT PRICE 8 7 300 mm cash-costs f
Slide 9: Factory utilization of foundries hit bottom
Factory utilization of foundries hit bottom but well below the trigger point for capacity buys Foundry Top-4 Utilization Performance STEPPER units SCANNER units TWINSCAN units ASML tool utilization [%] 100 2000 STEPPERS SCANNERS TWINSCAN 80 1800 60 1600 40 1400 Measured ASML systems [units] 20 1200
Slide 10: Strategy for the future
Strategy for the future / Slide 10
Slide 11: Technology developments continue in spite of current world wide crisis
Technology developments continue in spite of current world wide crisis Logic / SRAM 200 Resolution/half pitch, "Shrink" [nm] 100 80 Logic 60 6 Transistor SRAM Cell DRAM NAND Flash k1 0.40 ~ 0.44 50 40 30 DRAM 20 NAND k1 0.30 ~ 0.35 k1 0.27 ~ 0.30 1/1/04 1/1/05 1/1/08 1/1/09 1/1/12 1/1/13 1/1/02 1/1/
Slide 12: Lithography total market growth opportunity
Lithography total market growth opportunity Historical trends projected WW Litho Demand Simulation (2006 - 2015) : Factual until 2008 + • Semiconductor IC trend-based simulation forecast for 2009 unit growth 11000 Lithography System Revenue [Mio. €] 10000 continues at 9% per year 9000 8000 • Moore’s
Slide 13: Bottom-up scenario: Four engines of growth
Bottom-up scenario: Four engines of growth Even when assuming slow chip unit growth of 4% (due to Moore’s Law slowdown and slower electronics consumption in the West) More DRAM NAND/DRAM penetration rises to 10% of in expanding hard disk drives storage capacity, versus 7% consumer in slow-down scena
Slide 14: Bottoms-up scenario: significant litho demand indicated
Bottoms-up scenario: significant litho demand indicated Conservative scenario (4% unit growth) + emerging growth markets Worldwide litho demand simulation Factual until 2008 + NAND in servers IC trend-based simulation forecast for 2009 (PCRAM) 11000 Lithography System Revenue [Mio. €] 10000 More DRA
Slide 15: ASML confirms its strategy
ASML confirms its strategy z The lithography market offers significant growth potential; the company target of EUR 5 billion in annual revenues is still achievable, timing depending on macro economic circumstances z ASML key success factor is unmatched R&D innovation which will remain unaffected in
Slide 16: ASML fundamentals intact
ASML fundamentals intact / Slide 16
Slide 17: Cash flow positively impacted by working capital reduction and cost structure improvements
Cash flow positively impacted by working capital reduction and cost structure improvements z Working capital reduced by more than € 300 million (excl cash & cash equivalents) z Account receivables down by € 172 million z Current tax assets decreased by € 88 million z Inventories reduced by € 62 mill
Slide 18: Balance sheet position secured
Balance sheet position secured z Cash position € 1.2 billion within company target of € 1.0 – 1.5 billion z Standby facility € 500 million available until 2012 z € 600 million bond due not until 2017 z Secured additional credit facility of € 200 million with the European Investment Bank 2,500 2,000
Slide 19: Committed to R&D
Committed to R&D New product introduction on track z ASML deliberately uses its financial strength to uniquely continue aggressive R&D spending in strategically development programs to ensure timely introduction of next node production solutions z Successful cost savings in R&D through efficiency im
Slide 20: TWINSCAN NXT - improved overlay and productivity
TWINSCAN NXT - improved overlay and productivity Suitable for double patterning 32 nm and beyond • Platform capability >200 wafers per hour • Excellent overlay shown • during SPIE x, y : 1.9nm, 1.8nm x, y : 1.6nm, 1.7nm overlay overlay 99.7% 99.7% x: 1.9 nm x: 1.6 nm 5 nm y: 1.8 nm 5 nm y: 1.7 nm /
Slide 21: EUV pre-production systems ready in 2010
EUV pre-production systems ready in 2010 First full field 28 nm dense lines imaged Sub-40nm dense line resolution 22.5x15mm2 field size 28nm 1:1 LS 35 Wafer CDU H V 3σ (nm) 40 1.5 1.4 32 1.5 1.6 30 2.1 1.8 28 2.8 2.2 30 32nm Avg. 31.6nm 25 28nm 3σ=2.2nm Resist: Shin-Etsu SEVR-40 Good wafer CD unifor
Slide 22: Outlook and summary
Outlook and summary / Slide 22
Slide 23: Q2 2009 outlook
Q2 2009 outlook z ASML expects net sales between € 210 - 230 million z Gross margin expected at about 9% reflecting very low coverage of fixed costs z R&D is expected at € 118 million net of credit z SG&A is expected at € 41 million z Recent immersion orders and current quote activity give us comfor
Slide 24: Summary
Summary z First signs of technology purchases pick-up from current very low run rate are now visible z These technology purchases could translate into ASML revenue levels in support of technology transitions between € 400 and € 500 million per quarter within H2 2009 z ASML plans for “cash from opera
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ASML Holding — Merrill Lynch Global TMT Conference London 2009 on 6ix